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V0046-17 13 January 2017 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · ampliación de capital

No inclusion of income in Corporation Tax due to capital increase via debt offsetting

A company sought clarification on whether it should include income in its tax base following a debt restructuring involving a capital increase through the offsetting of credits. The DGT ruled that the transaction must be valued for tax purposes based on the amount of the commercial capital increase, regardless of the accounting income recorded.

The question raised

Whether the consulting entity shall not include any income in its Corporate Income Tax base for the 2015 tax period or subsequent periods, in connection with the planned capitalizations, regardless of whether an income could exist from an accounting perspective, and regardless of whether the accounting income was recorded in 2015 in a financial year different from that of the effective commercial capitalization.

The DGT's ruling

Capital increases or equity increases through the offsetting of credits are valued for tax purposes at the amount of the increase from a commercial perspective, regardless of the accounting valuation. Therefore, the entity shall not include income in its tax base for said capitalization, even if an accounting income exists. Furthermore, the interest accrued on those funds shall not be deductible as it represents a return on equity.

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